Credit Law Firm

As a business owner, it can be hard keeping work from home and home from work. The two worlds often collide, but there are some things you can do to protect your personal assets when your business starts to struggle.

Obtaining Insurance

Your business needs an insurance policy in place. Before you even open your doors, you should have adequate insurance coverage. When an incident happens in the workplace, you can avoid having a lawsuit filed against your company, and more importantly, against you personally.

Managing Debt and Savings

Some of the best ways to protect your personal assets as the owner of a company are to get out of debt and save for a rainy day. This will take some time and discipline, but it is possible, and it will pay dividends when the economy hits a rough patch or your business takes a hit. Without your limited income going straight to debt, you’ll have what you need to make utility payments or boost your inventory. Rather than having to dip into your personal finances to keep your business up and running, you can use the savings you have set aside.

Splitting Assets

If you are the sole owner of your business, you may want to put personal assets in your spouse’s name. Keeping your business completely separate from your personal assets by having separate people own each will protect your personal items and shield them from creditors on the other side.

When Bankruptcy Is the Only Option

Even after doing everything you can to protect your personal assets, hard times can hit without warning. If you face bankruptcy as your only option to financial hardship within your business, be sure your personal assets are protected. One benefit of bankruptcy is that as soon as your file, an automatic stay comes into place and your creditors cannot take any of your personal property. While you can’t predict the outcome of the situation at that point, it at least buys you some time to figure out what to do next.

Something else to keep in mind is the type of bankruptcy you file for. Chapter 7 allows the risk of you losing your home and other personal assets, while Chapter 13 gives you a chance to pay back the debts and keep your property.

Working With a Lawyer

Bankruptcy can be exhausting to deal with. There are a lot of ways it can go, and you also need to look out for your personal property. If you are a business owner hoping to protect personal assets, contact a bankruptcy lawyer, like a credit law firm in Las Vegas, NV,  today for assistance.